Rachel Reeves has been accused of “preying on the elderly and the ill” ahead of her November Budget next month. Britons are bracing for tax hikes during the Chancellor’s anticipated annual fiscal statement, as Prime Minister Keir Starmer refused to “rule out” rises during PMQs on Wednesday. One sector already preparing for increased taxes is farming, with farmland no longer exempt from inheritance tax.
Farm Manager Tim Hayward has condemned the Chancellor for “ripping up” decades’ worth of tax planning on his farm, as agricultural assets over £1 million will be required to pay a tax of 20% from April 2026. While Labour scrambles to fill the multi-million pound hole in public finances ahead of the Budget, farmers are being forced to sell their farmland to avoid the eye-watering tax bill.
“It’s basically ripped out 40 years of stable tax planning, and it just simply isn’t affordable,” Mr Hayward told GB News.
“We would have to put aside all of our profits for the next 20 years just to pay the inheritance tax, and clearly no business can operate with no profit for 20 years.”
He added that he is hoping for “some movement on the Annual Percentage Rate and Business Property Relief” during the November 26 announcement.
He continued: “At the moment they prey on the elderly and the terminally ill and in no way is that ever fair.
“But everything we’ve worked for is hanging in the balance, and we’d like some changes on that.
“We’d also like to see some certainty on the funding, on the Sustainable Farming Incentive. That would also be the next thing we’d like.”
In addition to farming, there are also concerns that Ms Reeves might target tax-free cash lump sums from pensions in her Budget – prompting savers to rush to withdraw the money.
In response to the rising number of cash withdrawals, the Treasury said: “With regard to the proposed ‘pension tax lock’, the Government does not comment on proposed tax changes or tax-related speculation ahead of Budgets.”
Investment platform AJ Bell has urged the Chancellor to publicly oppose changes now, to prevent people from making rash decisions that could damage their retirement finances.
Mark Cunningham, a partner at accountancy firm Blick Rothenberg, commented: “With the next Budget imminent, speculation is again building. If no changes are intended, it could be seen as irresponsible of the Chancellor not to confirm this in advance, given the previous history and the impact on those approaching retirement.”
